Gold Jewellery Buying Guide
Everything you need to know before buying gold jewellery in India - from understanding making charges to verifying purity and choosing the right savings scheme.
📑 In This Guide
Understanding Making Charges
Making charges are the fees jewellers charge for crafting jewellery from raw gold. This is where profit margins vary significantly between jewellers - gold rates are largely similar across the market, but making charges can differ by ₹100-400 per gram.
Types of Making Charge Structures
Per Gram Basis
Most common method. Charged as ₹X per gram of gold weight. Example: ₹300/gram on a 20g necklace = ₹6,000 making charges.
Percentage Basis
Charged as X% of gold value. Example: 15% on ₹1,00,000 gold value = ₹15,000 making charges. Common in traditional markets.
What Affects Making Charges?
- 1.Design Complexity: Simple chains (₹150-250/g) vs intricate temple work (₹400-800/g)
- 2.Craftsmanship Type: Machine-made (lower) vs handcrafted (higher)
- 3.Brand Premium: National chains typically charge more than regional jewellers
- 4.Weight: Very lightweight pieces may have higher per-gram charges due to complexity
💡 Pro Tip: Always ask for making charges BEFORE browsing designs. Some jewellers quote lower per-gram charges but add "wastage" (2-15%) separately.
Gold Purity & BIS Hallmark
Since June 2021, BIS hallmarking with HUID (Hallmark Unique Identification Number) is mandatory for all gold jewellery sold in India. This 6-digit alphanumeric code can be verified online at bis.gov.in.
Understanding Purity Marks
| Mark | Karats | Purity | Common Use |
|---|---|---|---|
| 999 | 24K | 99.9% | Coins, bars (too soft for jewellery) |
| 916 | 22K | 91.6% | Most Indian jewellery (traditional) |
| 750 | 18K | 75% | Diamond jewellery, modern designs |
| 585 | 14K | 58.5% | Western-style, everyday wear |
What to Check on the Hallmark
- ✓BIS Logo: Triangle mark of Bureau of Indian Standards
- ✓Purity Grade: 916, 750, etc.
- ✓HUID: 6-character alphanumeric code (verify at bis.gov.in)
- ✓Assaying Center Mark: Code of the testing center
Want to verify your gold hallmark?
Learn how to check HUID online and spot fake hallmarks.
Gold Savings Schemes
Most branded jewellers offer monthly savings schemes to help customers plan for major purchases like wedding jewellery. These schemes typically provide bonus benefits and protection against gold price increases.
How Gold Savings Schemes Work
Key Benefits
- ✓Bonus Value: 12th month free = ~8% effective return
- ✓Price Protection: Gold rate locked at purchase time, not enrollment
- ✓Discipline: Helps save systematically for big purchases
- ✓Flexibility: Redeem for any jewellery in their collection
Important Considerations
- ⚠Making charges and GST apply at time of purchase (not included in scheme)
- ⚠Money is locked with jeweller - check their financial stability
- ⚠Read terms carefully - some have minimum purchase requirements
- ⚠Compare scheme benefits across 2-3 jewellers before enrolling
Payment Options
Accepted Payment Methods
- • Cash (PAN required above ₹2 lakh)
- • Credit/Debit Cards
- • UPI (GPay, PhonePe, etc.)
- • Net Banking
- • Gold Savings Scheme Balance
- • Old Gold Exchange
EMI & Financing
- • No-cost EMI (select cards/banks)
- • Bank EMI (3-24 months)
- • Bajaj Finserv EMI Card
- • HDFC/ICICI Consumer Loans
- • Store Credit Programs
💡 Tip: Check if your credit card offers reward points on jewellery purchases. Some premium cards offer 2-5x points, effectively giving you 1-2% back.
Exchange & Buyback Policies
Understanding exchange policies is crucial - it affects the long-term value of your purchase. Most branded jewellers offer better exchange terms than local shops.
Types of Exchange
Same Brand Exchange
Exchange jewellery from the same jeweller. Usually get 100% gold value (no deductions). Best option for upgrades.
Other Brand/Old Gold
Exchange jewellery from other jewellers. Typically 2-10% deduction for purity testing and melting.
Exchange Tips
- 💡Exchange during festivals - many offer bonus value (5-10% extra)
- 💡Keep original invoice - ensures full exchange value
- 💡Compare exchange rates at 2-3 jewellers before finalizing
- 💡Stone weight is typically not valued in exchange
Smart Buying Tips
Before Visiting the Store
- 1.Check today's gold rate on GoldMeter
- 2.Research designs online to save time
- 3.Compare making charges across 2-3 jewellers
- 4.Check for ongoing offers or festival discounts
- 5.Set a budget and stick to it
At the Store
- 1.Ask for making charges BEFORE browsing
- 2.Verify BIS hallmark and HUID on each piece
- 3.Watch the weighing - ensure stones excluded
- 4.Get itemized bill (gold rate + making + GST)
- 5.Confirm exchange policy in writing
Pre-Purchase Checklist
Red Flags to Avoid
- ✕No BIS hallmark or reluctance to show HUID
- ✕Significantly lower gold rate than market
- ✕Hidden charges revealed only at billing
- ✕Pressure tactics or "today only" offers
- ✕Refusal to provide itemized bill
- ✕Weighing done out of customer's view
- ✕No clear exchange or return policy
- ✕Discouraging from checking hallmark
Ready to Buy?
Compare making charges and find the best jeweller for your needs.